The Securities and Exchange Board of India (SEBI) has announced a relaxation of Know Your Customer (KYC) norms aimed at simplifying the risk management framework. This adjustment, detailed in an updated notification to the master circular issued on October 12, 2023, responds to stakeholder feedback and aims to facilitate smoother transactions for clients.
The revised framework mandates KYC Registration Agencies (KRAs) to verify clients’ Permanent Account Number (PAN), name, and address within two days of receiving KYC records. Validated records will be confirmed through official databases such as the Income Tax Department database on PAN, Aadhaar XML, Digilocker, or M-Aadhaar.
In addition, exchanges, depositories, and concerned intermediaries are instructed to implement necessary technical changes by May 31, 2024, to align with these updates. These steps are part of SEBI’s ongoing efforts to protect investor interests and promote the development and regulation of securities markets.
The initial master circular was issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 17 of the SEBI KYC Registration Agency Regulations, 2011.
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